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WEX Stock Declines 5.1% Since Q1 Earnings & Revenue Beat
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WEX Inc. (WEX - Free Report) reported impressive first-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted earnings of $3.51 per share surpassed the Zacks Consensus Estimate by 3.2% and increased 1.5% from the year-ago quarter. Revenues of $636.6 million beat the consensus estimate by 1% but declined 2.5% on a year-over-year basis.
The stock has fallen 5.1% since the release of results on April 30, as the guidance for 2025 was weak.
For 2025, revenues are expected between $2.57 billion and $2.63 billion. The midpoint ($2.60 billion) of the guided range is below the current Zacks Consensus Estimate of $2.62 billion. Adjusted net income is now expected between $14.72 and $15.32 per share. The midpoint ($15.02 billion) of the guided range is below the current Zacks Consensus Estimate of $15.15 billion.
The Mobility segment’s revenues decreased 1.5% from the year-ago quarter to $333.8 million but surpassed our estimate of $324 million. The Corporate Payments segment’s revenues were $103.5 million, down 15.5% from the first quarter of 2024, and missed our estimate of $112.9 million.
The Benefits segment’s revenues increased 4.2% year over year to $199.3 million, beating our estimate of $192.5 million.
WEX’s Operating Results
Adjusted operating income declined 4.6% to $157.3 million from the year-ago quarter and missed our estimate of $231 million. The adjusted operating income margin of 36.7% was in line with our estimate but declined 180 basis points year over year.
Balance Sheet & Cash Flow of WEX
WEX exited the quarter with cash and cash equivalents of $610.3 million compared with $595.8 million at the end of the preceding quarter. The long-term debt was $4.1 billion, which increased 33% from the previous quarter’s actual.
The company used $481.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $16.2 million. Capital expenditure totaled $47.1 million.
WEX’s Q2 Guidance
For the second quarter of 2025, WEX anticipates revenues in the range of $640-$660 million. The midpoint ($650 million) of the guided range is below the current Zacks Consensus Estimate of $652.1 million. Adjusted net income is expected between $3.60 and $3.80 per share. The guided range is above the Zacks Consensus Estimate of $3.58.
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.
IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.
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WEX Stock Declines 5.1% Since Q1 Earnings & Revenue Beat
WEX Inc. (WEX - Free Report) reported impressive first-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted earnings of $3.51 per share surpassed the Zacks Consensus Estimate by 3.2% and increased 1.5% from the year-ago quarter. Revenues of $636.6 million beat the consensus estimate by 1% but declined 2.5% on a year-over-year basis.
The stock has fallen 5.1% since the release of results on April 30, as the guidance for 2025 was weak.
For 2025, revenues are expected between $2.57 billion and $2.63 billion. The midpoint ($2.60 billion) of the guided range is below the current Zacks Consensus Estimate of $2.62 billion. Adjusted net income is now expected between $14.72 and $15.32 per share. The midpoint ($15.02 billion) of the guided range is below the current Zacks Consensus Estimate of $15.15 billion.
WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote
Segmental Revenues of WEX
The Mobility segment’s revenues decreased 1.5% from the year-ago quarter to $333.8 million but surpassed our estimate of $324 million. The Corporate Payments segment’s revenues were $103.5 million, down 15.5% from the first quarter of 2024, and missed our estimate of $112.9 million.
The Benefits segment’s revenues increased 4.2% year over year to $199.3 million, beating our estimate of $192.5 million.
WEX’s Operating Results
Adjusted operating income declined 4.6% to $157.3 million from the year-ago quarter and missed our estimate of $231 million. The adjusted operating income margin of 36.7% was in line with our estimate but declined 180 basis points year over year.
Balance Sheet & Cash Flow of WEX
WEX exited the quarter with cash and cash equivalents of $610.3 million compared with $595.8 million at the end of the preceding quarter. The long-term debt was $4.1 billion, which increased 33% from the previous quarter’s actual.
The company used $481.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $16.2 million. Capital expenditure totaled $47.1 million.
WEX’s Q2 Guidance
For the second quarter of 2025, WEX anticipates revenues in the range of $640-$660 million. The midpoint ($650 million) of the guided range is below the current Zacks Consensus Estimate of $652.1 million. Adjusted net income is expected between $3.60 and $3.80 per share. The guided range is above the Zacks Consensus Estimate of $3.58.
Currently, WEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.
IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.